TABLE 11-3 As Part of an Evaluation Program, a Sporting Goods Retailer

question 91

True/False

TABLE 11-3
As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting speeds of 4 brands of bicycles. She took 3 of each brand and determined their maximum downhill speeds. The results are presented in miles per hour in the table below.
Trial Barth Tornado Reiser Shaw
1 43 37 41 43
2 46 38 45 45
3 43 39 42 46
-Referring to Table 11-3, the test is less sensitive to the assumption that the population of speeds has the same variance for the 4 brands because the sample sizes of the 4 brands are equal.

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Definitions:

Marginal Benefit

The supplementary enjoyment or advantage derived from consuming an extra unit of a good or service.

Marginal Cost

The amount of money needed to manufacture an extra unit of a good or service.

Diagram

A simplified drawing or plan that represents the essential features of something, often used for explanation or clarification.

Coase Theorem

A principle that asserts if trade in an externality is possible and there are no transaction costs, parties can negotiate to solve the problem privately.